Schroder European Real Estate Investment Trust

Launched on 9 December 2015, the Schroder European Real Estate Investment Trust targets growth regions in Continental Europe and aims to provide a regular and attractive level of income together with the potential for long-term income and capital growth. The Trust is managed by Tony Smedley, an experienced real estate investment manager, who is supported by nearly 100 real estate professionals located in key hubs across Europe, including London, Paris, Frankfurt and Zurich.

The Trust targets specific cities across the region with large, liquid real estate markets that offer superior growth potential. It invests in a range of real estate assets including offices and retail and leisure developments.

The Trust is listed on the market of the London Stock Exchange, with a secondary listing in South Africa.

Key reasons to invest:

Attractive income distribution with potential for long-term income and capital growth - Focus on investing in high quality, income producing real estate, targeting a dividend yield to investors of 5.5% p.a. and the potential for long term income and capital growth. Please note the dividend yield is a target yield and is not guaranteed.

Focus on the growth cities and regions of Continental Europe – Targeting the most liquid markets in continental Europe, such as Paris and Berlin for example, where GDP is expected to outperform national averages and where rental growth is forecast

Investment Expertise – Schroders has been managing real estate for over 40 years and currently has €14.2 billion of real estate assets under management (at 31 March 2017), with over 100 specialist real estate staff including investment, research and financing specialists based on the ground in the key European markets

Accretive debt finance and robust balance sheet – Positive yield gap between real estate yields and borrowing rates in Europe means modest borrowing can boost returns from the property portfolio. Gearing does also introduce risk in to the portfolio and gearing is capped at 35% of the gross assets of the company to mitigate this risk

Liquid structure to own real estate - Closed ended fund structure with daily liquidity via listing on the main market of the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange

Note: Company launched on 9 December 2015, performance data does not exist for five 12 month periods. 1Source: Schroders, Datastream, bid to bid price with net income reinvested in GBP.2Source: Schroders, NAV to NAV (per share) plus dividends paid.3Source: Schroders, NAV to NAV (per share) plus dividends paid. Converted into GBP. All data is as at 30 June 2017.

What are the risks?

Past performance is not a guide to future performance and may not be repeated.

The value of investments, and the income from them, can rise and fall and investors may not get back the amount originally invested.

Companies which invest in a smaller number of assets carry more risk than those spread across a larger number of assets.

The Company may invest solely in property located in one country or region. This can carry more risk than investments spread over a number of countries or regions.

The Company may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the assets purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so.

The fund holds investments denominated in currencies other than sterling, changes in exchange rates will cause the value of these investments, and the income from them, to rise or fall.

Non-Mainstream Pooled Investments (NMPI) Status

The Company currently conducts its affairs so that its shares can be recommended by IFAs to ordinary retail investors in accordance with the FCA's rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The Company's shares are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an investment trust.

Important Information

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